1 Management of Financial Institutions

2 Lending Operation & Risk Management

3 International Trade & Foreign Exchange
4 Information Technology in Financial Services
5 Management Accounting

PAPER 1 : MANAGEMENT OF FINANCIAL INSTITUTIONS

Full Marks : 100

MODULE A: INTRODUCTION TO BUSINESS OF FINANCIAL INSTITUTIONS

            An Overview of Banks and Non-Banks and Their Services, Economic Analysis of
Financial Institutions, Impact of Govt. Policy and Regulations, Financial Statements of
Financial Institutions.

Module  B: Asset-Liability Management (ALM) Techniques

         Asset and Liability Management Strategy, Fund Management Strategy, Interest Rate
Risks-Gap and Duration Management, Futures, Options and Other ALM Techniques,
Investment Functions and Instruments, Demand for Supply of Liquidity, Liquidity Problems-
Strategies for Liquidity Management.

Module  C: Managing Sources of Funds

      Deposit and Non-Deposit Funds, Off-Balance Sheet Sources Securitization, Loan Sale
etc.    Management of Capital BASEL-II Framework (BB Guideline).

Module D: Profitability and Productivity and Consumers

             Measuring and Evaluating Financial Institutions Performance, Camels Rating.

Module E: Risk Management of Financial Institutions

         Risk Identification, Measurement, Mitigation Technique, Core Risk Management
Guidelines of     Bangladesh Bank, Market Risk, Operational Risk & Reputation Risk.

References:

1. Core Risk Management Guidelines of Bangladesh Bank.

2. Mishkin, Frederic S. The Economics of Money, Banking and Financial Markets.
    Harper- Collins, New York.
3.Rose, Peter S. Commercial Bank Management. IRWIN, International Edition, New York.

PAPER 2 : LENDING OPERATIONS AND RISK MANAGEMENT

Full Marks : 100

Module A : Introduction of Loan Portfolio Management in Financial Institution

                       Credit Planning, Policy and Vision, Complete Transaction.

Module B : Principles of Good Lending and Credit Process

           Different Types of Borrowers and Loan Accounts, Selection of a Borrower, Loan
Interviewing and Credit Investigation, Loan Sanctioning and Disbursement Process.
Module C : Commercial Lending Environment
                   Characteristics of a Good Credit Officer, Features of Good Loan Policies.

Module D : Basic Financial Analysis

          Financial Statement Analysis, Financial Spread Sheet: Communize and Comparative
Financial
       Statements, Cash Flow, Fund Flow, Ratio Analysis, Credit Scoring System.

Module E : Term Lending by Banks

Appraisal of Term Lending Cases, Technical Aspect, Marketing Aspect, Managerial Aspect,
Financial Aspect and Economic Aspect, Cost of The Project and Means of Financing, Capital
Budgeting Techniques, Internal Rate of Return (IRR), Economic Rate of Return (ERR), Cost-
Volume-Profit Relationships.

Module F : Working Capital Lending

          Requirements, Estimation and Techniques.

Module G : Financial Projection

          Projected Financial Statements, Cash Budget.

Module H : Lending Risk Management

          Concept and Technique, Credit Risk Grading (CRG) Techniques, Bangladesh Bank
Guidelines and Regulations, Portfolio Risk Assessment and Management Technique, Asset
Securitiesation, Credit Derivatives, Loan Syndication, Loan Sales etc.

Module I : Loan Structuring and Pricing

Module J : Modes of Charging Securities, Loan Documentation

Module- H :  Follow-up, Repayment and Reporting, Problem Loans

References:
1    Bedi,  H.L.   and  V.K.   Hardikar. Practical  Banking  Advances.
       Institute  of  Banking       Studies, India.
2    IBB guidelines and Circulars.
3    Morsman,  Jr.  Edgar  M.  Commercial   Loan   Portfolio   Management. 
      Robert  Morris Associates, U.S.A
4    Ruth, George E. Commercial Lending. American Bankers Association, U.S.A.
5    Signoriello,  Vincent J. Commercial Loan Practices and Operations.
      Bankers Publishing Company, U.S.A.
6    Simha, S.L.N. Credit Management. IFMR, Madras.

PAPER 3 :  INTERNATIONAL TRADE AND FOREIGN EXCHANGE

Full Marks : 100

Module A: An Overview of Foreign Trade

          Importance and Trends of International Trade
          Composition and Trends of Bangladesh Foreign Trade
          The Role of WTO for Removal of Tariff and Non-Tariff Barriers
          Inco-Terms Terms Used in the International Trade
          Payments and Clearing Unions EU, NAFTA, LAFTA, ACU
          Balance of Trade and Balance of Payments
          Salient Features of Export and Import Policies of Bangladesh
          Incentives Including GSP for Exports from Bangladesh

Module B: General Knowledge Regarding

          International Organizations Like IMF, World Bank, IFC, IDA, ADB, Islamic
Development Bank (IDB), etc.

Module C: Role of Banks in Foreign Trade

          Methods of Settlement of Payments for International Trade
          Cross Border Fund Transfer Systems Including SWIFT and Other Forms of Electronic
Fund Transfers
          Documents Used in International Trade and Their Scrutiny by the Banks
          Main Features of Uniform Customs and Practice for Documentary Credits (UCPDC)
(ICC Publication No.600)
          Main Features Uniform Rules for Collection (ICC Publication No. URC 522)
          Arrangement for Settlement of International Payments: Correspondence
Relationship,
      Nostro And Vostro Accounts

Module C: Protection Against Risk in Foreign Trade

          Precautions Against Common Frauds and Forgeries

          Protection Against Political and Economic Risks and
          Export Credit Guarantee Schemes in Force in Bangladesh

Module D: Exchange Control Regulations

          Salient Features of Foreign Exchange Regulation Act, 1947
          Exchange Control Regulations Regarding Forex Operation by Authorised Foreign
Exchange Dealers
          Foreign Investment in Bangladesh Including Export Processing Zones
          Special Provisions in the Anti-Money Laundering Act, 2008 Affecting International
Payments

Module E: Exchange Rates

          Changing Pattern of Exchange Rates Since World War I
          Factors Affecting Exchange Rates
          Various Types of Exchange Rates
          Management of Exchange Rates in Bangladesh

Module F: Foreign Exchange Markets

          In Bangladesh
          Overseas and
          Euro-Currency Market

Module G: Dealing In Foreign Exchange

          Foreign Exchange Positions
          Trading in Foreign Exchange
          Offshore Banking Operations
          Lending and Borrowing in Foreign Currencies and
          Derivatives in Foreign Currencies

Module H: Financing of Foreign Trade in Bangladesh

          Various Forms of Financing Exports From and Imports into Bangladesh
          Arrangements and Forms of Export From and Imports into Bangladesh
          Role of Bangladesh Bank Regarding Export and Import Finance

Module I: Exchange Arithmetic

          Selection of Buying and Selling Rates for Spot and Forward Transactions
         Calculation for Buying and Selling Rates, Spot, Forward and SWAP, for Export and
Import Bills,
    Investment and Other Miscellaneous Payments.

References:

1         Ali, Syed Ashraf: Foreign Exchange and Financing and Risk Management, 2nd
Edition, Mowla Brothers (Dhaka, Bangladesh).
2         Andly, K. K. : Foreign Exchange.
3         Awasthi, G. D. Trade Payments (Academy of Business Studies, Delhi, India).
4         Keskamat. V. V. : Foreign Exchange  An Introduction.
5         Lall, G. S.  Finance of Foreign Trade and Foreign Exchange (HPJ Kappor, New
Delhi.).
6         Verghese, S. K. : Foreign Exchange and Financing of Foreign Trade.
7         Watson, A. J. W. : Finance of International Trade (Institute of Bankers, London).
8         Whiting, D. P. : Finance of International Trade (McDonald & Evans).
9         Wheble B. S. : Uniform Rules for Collection (Chartered Institute of Bankers,
London).

PAPER 4 : INFORMATION TECHNOLOGY IN FINANCIAL SERVICES

Full Marks : 100

Module A: Introduction to IT and Computer Systems

           Concept and Importance of IT, Role of IT in Financial and Business World. MIS.
Electronic Banking and Electronic Commerce.
          Computer Hardware  Anatomy of Computer, Types of Computers, Central Processing
Unit (CPU), Main Memory, Computer Systems, Peripheral Controllers, Peripherals (Terminal,
Printer, Floppy Drive, Disk Drive, Compact Disk, Tape Drive, Cartridge, Tape Drive Graph
Plotter, Mark Sense Readers, Etc.), Current Trends.
          Computer Software  Need for Software, What is Software ? Types of Software,
Systems Software, Operating Systems, Language Translators (Compilers, Interpreters),
Programming Language Data Base Management Systems (DBMS), 4th Generation Language
Tools, Application Software, Application Areas, Packaged and Tailored Software, Software
Development, Current Trends.

Module B: Security Considerations

          Accidental Damage, Power Failures, Malicious Damage, Operational Problems, Data,
Encryption and Decryption, Standards, Audit Trails. Accountability, Liability & Control ;
System Vulnerability & Abuse ; Creating Control Environment ; Internet Security ;
Development A Control Structure ; Ensuring System Quality.

Module C: Different Approaches to Bank Mechanization

           Stand Alone Computer System, Local Area Networks (LAN), Local Processing With
Batch Updates, On-Line Updates With Shadow Posting, Remote Computing Facility With
Batched Input  On Line Systems With Mini Computer Networking and With Mainframe
Computer, Duplication of Databases at Different Levels.
Module D: Electronic Payment Systems & Funds Transfer Systems
          Teller Machines at Bank Counters, Cash Dispensers, Stand Alone Automated Teller
Machines (ATMs), ATM with On-Line Inquiry and Update Facilities, Home Banking & E-
Commerce (Corporate and Personal).
          Plain Messages (Telex or Data Communication), Structured Messages (SWIFT, Etc.),
Direct Fund Settlement Systems (CHIPS, Etc.), two Level Funds Transfer Settlement
(FEDWIRE, BANKWIRE Point-of Sale Systems).

Module E: Document Handling Systems, Additional Banking Applications & Other

Aspects
           Cheque Sorting and Balancing Systems (MICR, OCR, Etc.), Document Storage and
Retrieval Systems (Microfilming), Document Transmission Systems (FAX).
          Inter-Branch Reconciliation, Foreign Exchange Dealing, Investment Management
Systems, Cash Management Systems, Statistical Analysis.
          Personal Identification Numbers and Their Use in Conjunction with Magnetic Cards of
Both Credit and Debit Types, SMART Cards, Signature Storage and Display by Electronic
Means, Cheque Truncation, Microfische, Note and Coin Counting Devices.

Module F: Risk Management and Legal Framework in IT

            National ICT Policy 2002, ICT Act-2006, Bangladesh Bank Guidelines, Cyber Law

References: 

1          Bajwa K.S.  Bank Mechanisation (Skylark Publication).

2          Different journals and periodicals on computer.
3          Hunt R. and Shelley J.  Computer and Common Sense (Prentice-Hall of India Private
Limited, Latest Edition).
4          Lipis, Marschall, Linkers  Electronics Banking (John Wiley and Sons).
5          Rangarajan Committee Report  Mechanisation and Automation in the Banking
Industry, Reserve Bank of India (1984).
6          Rajgopalan R.  Understanding Computer (Tata McGraw Hill Publishing Co. Ltd.)
7          Study of Use of Modern Tools in Banking (Indian Banks Association, 1993).
8          Srivastava  Computer Application in Banks (Bankers Training College, Reserve Bank
of India).                                                                       
PAPER 5 : MANAGEMENT ACCOUNTING
Full Marks : 100

Module A: Definition and Scope of Management Accounting

          The Place of Management Accounting/Short comings of The Traditional Methods of
Credit Analysis
          Its Definition and Scope, Distinction Between Financial Accounting and Management
Accounting  Role of Management Accountant  Analysis and Interpretation of Finance
Statements.
          Planning Process
          Setting of Objectives

Module B: Costing and Pricing

          Methods of Costing  Classification of Costs  Implication of Costing for Bankers
          Objectives of Pricing  Common Misconceptions in Pricing  Cost, Volume, Profit
Relationship  Break-Even Analysis  Limitations of Break-Even Analysis  Planning for Profit.
Module C: Budgeting and Expenditure
          Importance of Budgeting
          Objectives of Budgeting  Preparation of Budgets  Importance of Budgets to Bankers,
Standard Costing Control Through Budgets.
         Method of Appraisal; Shortcomings of Appraisal Methods Capital Budgeting  Its
Importance to Lending Banker.

Module D: Planning for Liquidity

        Cash Flow Forecast  Objectives of Cash Flow  Preparing A Cash Flow Forecast/Using
The Cash Flow/Cash Flow Forecast and Lending Banker.
          Statement of Sources and Application of Funds

Module E: Working Capital Management

          Factors Affecting Working Capital Requirements Short Term Financial Forecasts 
Assessment of Working Capital  Production and Operating Cycle  Inventory Management 
Cash and Receivables Managements  Methods of Financing Working Capital  Different Forms
of Bank Credit  Management Reports  Types of Information and its Relevance to Banks

Module F: Leasing and Hire Purchase

         Financing Against Lease  Forms of Lease Financing  Economics of Leasing-Financing
against Hire Purchase Agreements  Relative Merits of Leasing Finance and Hire Purchase
Finance from Customer"s and Lending Bank"s Point of View

References: 

1          Bhattacharya, S. K. and John Deanden Accounting for Management : Texts & Cases
Hingorani & Chawla. Management Accounting (Indian Institute of Bankers, Published by
Himalaya Publishing House, Mumbai, India).
2          Egginton, D. A.  Accounting for the Banker, (Longman).
3          Fisher, J.  Financial Analysis and Management Accounting for the Banker (The
Institute of             Bankers in Scotland).
4          Kuchhal, S. C.  Financial Management  An Analytical & Conceptual Approach.
5          Khan, Md. Mainuddin  Advanced Accounting (Ideal Library Dhaka).
6          Pitcher, M. A.  Management Accounting for the Lending Bankers.

 
B    OPTIONAL SUBJECTS
PAPER 6(a) : CENTRAL BANKING AND MONETARY POLICY
Full Marks : 100

Module A : Introduction to Central Banking

          Central Bank in The Financial System, Evolution, Characteristics, Objectives,
Philosophy and Functions of Central Banks, Relationship Between Central Bank and Govt.,
Central Bank and Commercial Banks, Modern Central Banking, Autonomy of Central Bank,
Separation Between Supervisory and Monetary Authorities.

Module B : Supervision of Financial Institutions

          Theory, Objectives and Agencies of Bank Examination/Regulation, Methods of Bank
Examination, On Site and Off-Site (CEMELS Rating), Deposit Insurance and Bank Failures.
Risk Management and Internal Control Mechanism. Basic Guidelines on Bank Supervision,
Supervision of Non-Banks & Other Financial Institutions.

Module C : Monetary Policy

          Money and is Functions, Demand for and Supply of Money, Multiple Deposit Creation,
Determinations of Money Supply, Monetary Base and Money Multiplier, Conduct of Monetary
Policy-Tools, Targets, Goals and Monetary Transmission Mechanism.

Module D : Central Banking and Monetary Management in Bangladesh

          Bangladesh Bank order, 1972; Prudential Regulation, Monetary Policy of Bangladesh.

Module E : Exchange & Reserve Management

          Exchange Rate Policy, Fixed & Floating Rate, Relationship with International
Monetary Intuitions, Foreign Currency Investment.

References: 

1          Ahmed, A.K.N. Of Deregulation and Central Bank Autonomy. University Press Ltd,
Dhaka.
2          Bangladesh Bank Publications.
3          BIS. Core Principles for Effective Banking Supervision.
4          Dekock, M.H. Central Banking
5          Mishkin, Frederic, S. The Economics of Money, Banking and Financial Markets. 
Harper             Collins, New York.
6          Sheng, Andrew. Bank Supervision. Principles and Practice. EDI Working Paper.
7          Smith, Gray. Money, Banking and Financial Intermediation. Heath and Company,
Lexington, D.C.
8          Vittas, Dimitri. Financial Regulation. The World Bank, Washington.